Harley‑Davidson’s new strategy to regain market share with more affordable motorcycles has drawn skepticism from one of Wall Street’s major credit rating agencies. While we don’t usually pay that much attention to credit‑rating news, this one stood out for its lack of confidence in Harley CEO’s new approach.
The downgrade centers on Harley‑Davidson’s recently announced “Back to the Bricks” strategy, unveiled in May, which shifts the company’s focus toward attracting new riders through lower‑priced motorcycles. The plan includes the return of the Sportster lineup and the introduction of a new Sprint model, with entry‑level pricing expected to start around $10,000 when the motorcycles reach dealerships beginning in late 2026 and into 2027.
S&P said the strategy could help Harley‑Davidson recover market share that has steadily declined in recent years. According to the agency, Harley’s share of U.S. motorcycle registrations fell from approximately 49% in 2019 to about 34.5% in 2025. If the strategy succeeds, S&P estimates the company’s market share could rebound to roughly 45%.
However, the ratings agency questioned whether the lower‑price approach will generate sufficient profitability for investors.
In its analysis, S&P said Harley‑Davidson appears to be prioritizing market share over per‑unit margins, projecting adjusted EBITDA margins of just 5% to 6% in 2026. The agency said it could take several years for margins to approach 10%, well below the more than 16% EBITDA margins the company reported in 2022 and 2023.
S&P also pointed to additional financial headwinds, including restructuring costs tied to workforce reductions and tariff‑related expenses. Harley‑Davidson has targeted $150 million in annual cost reductions and recorded approximately $15 million in restructuring charges during the first quarter. The agency also noted management expects steel and aluminum tariffs to increase costs by an estimated $75 million to $90 million in 2026, although Harley believes those costs will moderate over time as trade policies evolve.
The strategy is being led by president and CEO Artie Starrs, who took over the company in late 2025. The plan aims to increase motorcycle sales through more accessible pricing while expanding the installed customer base that can generate higher‑margin revenue from parts, accessories, apparel and customization.
Despite the downgrade, S&P said Harley‑Davidson maintains a strong liquidity position. As of March 31, the company held approximately $1.8 billion in cash and cash equivalents and had access to more than $2 billion through its commercial paper program. The stable outlook reflects the company’s liquidity and relatively conservative leverage profile, according to the ratings agency.
S&P’s assessment differs from other major credit agencies. According to the agency’s report, both Moody’s and Fitch continue to rate Harley‑Davidson’s debt within investment‑grade territory, although at different levels.
The downgrade highlights investor concerns about the profitability of Harley‑Davidson’s turnaround plan rather than its financial stability. While expanding the lineup with lower‑priced motorcycles could help attract younger and first‑time riders, investors and analysts will be watching closely to see whether higher unit sales can offset thinner margins and restore the company’s long‑term earnings growth.
Fresh reports out of Europe have revived speculation that the Volkswagen Group could consider selling Ducati as the automaker works through a sweeping restructuring program. However, no formal sale process has been announced.
According to the Financial Times, cited by several motorcycle industry outlets, including Visordown, investment bankers have urged Volkswagen to explore selling Ducati after the company recently raised €7.4 billion ($8.4 billion) through the sale of a majority stake in its marine engine business, Everllence.
The reports come as Volkswagen continues one of the largest restructuring efforts in its history. The automaker is reportedly looking to cut as many as 100,000 jobs and close multiple factories while investing heavily to remain competitive against rapidly growing Chinese electric vehicle manufacturers.
Analysts quoted by the Financial Times reportedly believe the proceeds from the Everllence transaction could be quickly consumed by restructuring costs, prompting advisers to recommend additional asset sales. Among the options reportedly discussed are Ducati and a potential spin‑off of Lamborghini.
This is not the first time Ducati has been linked to a possible sale. In 2017, Volkswagen conducted a strategic review that included exploring a sale of the Bologna‑based motorcycle manufacturer in the wake of the Dieselgate emissions scandal. While several buyers were rumored at the time, Volkswagen ultimately retained the brand.
Despite the latest speculation, reports indicate there is no evidence that Volkswagen has officially put Ducati on the market. The Financial Times reported that Volkswagen declined to comment on whether it is considering additional divestitures, while analysts interviewed by the publication said a Ducati sale remains far from certain.
Ducati has become one of Volkswagen Group’s strongest‑performing premium brands since it was acquired by Audi in 2012. The Italian motorcycle manufacturer has posted record sales in recent years and continues to benefit from its premium positioning and racing success in MotoGP and WorldSBK.
For now, the reports amount to renewed industry speculation, and they underscore the financial pressures facing one of the world’s largest OEMs and the value Ducati represents within its portfolio.
Polaris announced June 22 that it has appointed Dustin Semach to its board of directors, adding an executive with extensive experience in finance, operations and business transformation as the company continues to navigate a challenging powersports market.
Semach’s appointment became effective June 19. He will serve on Polaris’ audit committee and compensation committee.
“Dustin is an accomplished leader in the industrial and technology sectors whose experience across finance, strategy and operations brings valuable perspective to Polaris,” says Polaris Board Chair John Wiehoff. “His background complements the board’s strategic focus on advancing our powersports strategy and positioning the company for its next phase of growth, while delivering long‑term value for shareholders.”
Semach currently serves as president and CEO of Sealed Air Corp., a global packaging solutions company known for brands such as Cryovac and Bubble Wrap. He was named president and CEO in February 2025 after joining the company as chief financial officer in 2023.
Before Sealed Air, Semach held CFO positions at TTEC Holdings and Rackspace Technology and served in leadership roles at DXC Technology, Computer Sciences Corp., and IBM.
The appointment comes as Polaris continues to focus on operational efficiency and long‑term growth initiatives amid softer retail demand across several powersports segments. The company has spent the past two years managing elevated dealer inventory levels, moderating production and implementing cost‑reduction measures while investing in product development and strategic growth opportunities.
Adding a board member with deep experience in finance, technology and corporate transformation could prove valuable as Polaris works to improve profitability and position itself for future growth when market conditions improve.
Polaris’ board now includes leaders from a variety of industries, reflecting the company’s focus on governance, operational excellence and shareholder value.
Torque Group just announced that dealership management solutions provider, DX1, is now integrated into its contracting system.
The F&I solutions provider has had Lightspeed integration for years, but requests from dealers continued to pour in about adding DX1, and the company responded.
With the new DX1 integration, dealership personnel can enter the deal number to pull vehicle, customer, and financial information directly into the Torque Group contracting system. This helps reduce the potential for manual entry errors, creates F&I contracts faster and more efficiently, and streamlines the F&I process for dealership staff.
The rollout represents not just a new integration, but also a commitment to listening to its dealers. The addition of DX1 was one of the most requested enhancements from Torque Group’s dealer network, and the company says it was eager to deliver a solution that helps dealerships work more efficiently while simplifying the F&I contracting process.
“Torque Group was built exclusively for the powersports industry, and every technology investment we make is centered around helping dealerships succeed,” the company said in an email to Powersports Business. “The addition of DX1 integration reflects our continued commitment to simplifying the F&I process, improving efficiency, and delivering the dealer experience our partners expect from us.”
The Motorcycle Industry Council (MIC) is weighing in on two federal Section 301 tariff investigations that could have significant implications for powersports manufacturers, importers and suppliers.
According to the association, it is submitting comments to the Office of the U.S. Trade Representative on separate proceedings involving Vietnam and an investigation into alleged forced labor practices spanning 60 countries.
The filings come as the federal government’s tariff strategy continues to shift following the U.S. Supreme Court’s decision limiting the use of broad tariffs under the International Emergency Economic Powers Act. The administration has increasingly turned to established trade authorities such as Section 232, which addresses national security concerns, and Section 301, which targets unfair trade practices by foreign governments.
The Vietnam investigation centers on whether the country provides adequate protection for intellectual property rights. The issue is particularly relevant to the powersports industry because Vietnam is a major manufacturing center for motorcycles, riding apparel and protective equipment, including helmets, boots, jackets, gloves and riding pants, among others.
The second investigation examines alleged forced labor practices across 60 countries. Given its broad scope, any future tariff actions could have wide‑ranging effects on imported powersports products, components and global supply chains.
“For too long, American workers and firms have been forced to compete against foreign producers who may have an artificial cost advantage gained from the scourge of forced labor,” says Ambassador Greer. “These investigations will determine whether foreign governments have taken sufficient steps to prohibit the importation of goods produced with forced labor and how the failure to eradicate these abhorrent practices impacts U.S. workers and businesses.”
The MIC said its comments are based on member feedback and are intended to help policymakers better understand how potential tariff actions could affect the powersports industry. The association said it plans to continue working with federal officials as both Section 301 proceedings move forward.
The organization also noted that the evolving tariff landscape was discussed during its recent Critical Issues Facing the Powersports Industry symposium, where members received updates on trade policy and other regulatory issues affecting the industry.